Shares of Indian drone-related companies have seen a sharp rise following renewed tensions between India and Pakistan. Defence and surveillance drones, a key component of modern warfare, have come into focus, with investors tracking companies active in this space.
Growing role of drones in warfare
Drones have become essential in modern conflicts, with the Russia-Ukraine war showing their strategic value. In 2024, both Russia and Ukraine reportedly produced over a million drones. India’s drone companies are now under similar attention as regional tensions grow.
Stock selection criteria
This analysis includes companies directly manufacturing drones, those offering drone services, and firms in partnerships for drone production. The stocks are ranked based on their performance since May 7—the day India announced retaliatory strikes on Pakistan.
Top Performing Drone Stocks in India
Ideaforge Technology
- Stock movement: +56% to ₹558.2 since May 7
- Past year performance: -22%
- Business: Manufactures unmanned aircraft systems for civil and defence use
- Order book: ₹13.8 crore as of March 2025, down from ₹176 crore in December 2023
- Financials FY25: Revenue ₹161 crore (↓ from ₹314 crore), Net loss ₹62 crore
- Key shareholder: Infosys holds 3.82%
Zen Technologies
- Stock movement: +36% to ₹1,794.8
- Past year performance: +86%
- Business: Combat training and counter-drone solutions
- Order book: ₹950 crore (March 2025)
- Financials FY25: Revenue ₹974 crore, Net profit ₹299 crore
- Valuation: P/E 57.8, ROE 26.1%, ROCE 36.7%
Paras Defence and Space Technologies
- Stock movement: +31% to ₹1,817.4
- Past year performance: +132%
- Business: Drone manufacturing through subsidiary Paras Aerospace
- JV: With Israel’s Heven Drones for cargo drones
- Financials FY25: Revenue ₹365 crore, Net profit ₹61 crore
- Order book: Over ₹900 crore
- Valuation: P/E 118, ROE 11.3%, ROCE 15.4%
Droneacharya Aerial Innovations
- Stock movement: +29% to ₹79.69
- Past year performance: -44%
- Business: Drone pilot training, data processing, surveys
- Financials (Sept 2024): Revenue ₹26.9 crore, Net profit ₹1.61 crore (↓ from ₹3.96 crore)
- Valuation: P/E 34.3, ROE 8.62%, ROCE 11.8%
Hindustan Aeronautics (HAL)
- Stock movement: +14% to ₹5,115.5
- Past year performance: +7%
- Business: Defence aircraft maker, partnered with Garuda Aerospace for drones
- Order book: ₹1.84 lakh crore (↑ from ₹94,129 crore)
- Financials FY25: Revenue ₹30,981 crore, Net profit ₹8,364 crore
- Valuation: P/E 41, ROE 26.1%, ROCE 33.9%
Drone Destination
- Stock movement: +10% to ₹126.85
- Past year performance: -56%
- Business: Drone training, rental, manufacturing, and repair services
- Financials (Sept 2024): Revenue ₹13.83 crore (↑152%), Net profit ₹1.02 crore (↑161%)
- Valuation: P/E 40.1, ROE 17.9%, ROCE 23.3%
Key takeaways for investors
Most companies that gained in this rally have healthy order books and recent contract wins. However, Ideaforge’s falling order book shows that stock performance may not always reflect long-term business strength.
Investors should evaluate company fundamentals, order pipeline, profitability, and partnerships before making decisions, especially in a volatile defence sector driven by geopolitical developments.
